- The Washington Times - Tuesday, November 5, 2002

Anteon International Corp. stock continued to dip yesterday, even though the company reported strong quarterly earnings and increased contracts with the federal government.
The Fairfax information-technology and defense-systems engineering company closed at $23.86 yesterday, down 84 cents from Friday's close of $24.70.
Brent Manderfeld, senior research analyst for U.S. Bancorp Piper Jeffrey, said the drop from Anteon's six-month high last week of $28.64 resulted from the company adjusting to the government's lengthier payment process.
"The bottom line is that the federal government's processing centers are going through infrastructure changes that have slowed down their ability to pay Anteon in a timely manner," said Mr. Manderfeld, who rated the company a strong buy.
"What matters is the new business is there for Anteon in the right areas like weapons systems and logistics, and will continue to be there for at least the next four years in what is the best end-market for businesses," he said.
The company has managed to keep its stock afloat in the technology sector by focusing its business on the federal government, primarily the Department of Defense, said Joseph Kampf, Anteon president and CEO.
"We focus on the DOD and several other federal agencies because they're showing solid spending growth in updating their weapons and intelligence systems," Mr. Kampf said.
"The U.S. is fighting a global war on terrorism, but it's really more of an information-processing war, where our military has to have the necessary equipment available to track down these terrorist groups."
Anteon generated $501 million in new business orders for the third quarter ending Sept. 30, with contracts to provide support for missile systems for the Navy and for the National Distress System in the Coast Guard.
The new orders helped the company's income climb 13 percent to $16.5 million (22 cents per diluted share) from $13 million (16 cents) a year earlier.
David Garrity, managing director for American Technology Research, an independent investment research firm, called Anteon's projected revenue increase for 2003 "fairly conservative" at 13 percent to 15 percent.
"This is a company that has shown continual growth of 20 to 28 percent for the last five years, so 15 percent is a very real number, but it will likely be higher at probably 24 percent," said Mr. Garrity, who also rated the stock as a buy.
The stock's advance from $18, when it went public in March, to a six-month high of $28 before stabilizing at $25 is encouraging, Mr. Garrity said.
"The company has done very well in the stock market despite coming into it in a rather turbulent time, and it shows that Anteon is riding a strong business momentum that has come with the new defense-spending bill that was passed," Mr. Garrity said.

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